Economy stonks v27: banks, the kings of vega

[HOLA]

Berkshire now sitting on $157 billion just in cash.



Operating earnings were way up, but that's almost entirely from insurance underwriting and investment income. Railroad, utilities and energy earnings were way down. Manufacturing, service and retailing managed to be slighly up.

 

[RoastBeast]

Stupid question but I can't seem to find an answer to this online.

Lets say you day trade and make $1000 profit from some of your day trades through the year and then lost $1500 on other day trades in the same year so your net is -$500 for the year.

Do you not pay any capital gains because your net was in the negative or do you still pay them on the $1000 you earned?

 

[aerius]

Stupid question but I can't seem to find an answer to this online.

Lets say you day trade and make $1000 profit from some of your day trades through the year and then lost $1500 on other day trades in the same year so your net is -$500 for the year.

Do you not pay any capital gains because your net was in the negative or do you still pay them on the $1000 you earned?

Depends on which country you live in and how communist it is.

 

[Rob Battisti]

Berkshire now sitting on $157 billion just in cash.



Operating earnings were way up, but that's almost entirely from insurance underwriting and investment income. Railroad, utilities and energy earnings were way down. Manufacturing, service and retailing managed to be slighly up.

Imagine holding that much cash to see it just burned away with inflation

 

[aerius]

Imagine holding that much cash to see it just burned away with inflation

That should tell you something; they don't see a better place to put it. Berkshire is essentially saying that taking a known loss from on their cash pile inflation is a better bet than risking it in the markets, which tells you exactly what they think about the markets.

 

[Rob Battisti]

That should tell you something; they don't see a better place to put it. Berkshire is essentially saying that taking a known loss from on their cash pile inflation is a better bet than risking it in the markets, which tells you exactly what they think about the markets.

Yeah it’s stupid considering the market has fucking KILLED this year. Buffet is a indicator of compounding he isn’t a master investor

 

[HOLA]

Imagine holding that much cash to see it just burned away with inflation

It's not cash he has stuck in mattresses. He has it invested in short-term fixed-income, which is considered a cash-equivalent. Because yields have gone up so much, his investment income rose by billions due to it. It's a major reason their operating income just increased 40%.

 

[HOLA]

Stupid question but I can't seem to find an answer to this online.

Lets say you day trade and make $1000 profit from some of your day trades through the year and then lost $1500 on other day trades in the same year so your net is -$500 for the year.

Do you not pay any capital gains because your net was in the negative or do you still pay them on the $1000 you earned?

Your net result is -$500, which can be deducted against ordinary income for the year.

 

[Rob Battisti]

It's not cash he has stuck in mattresses. He has it invested in short-term fixed-income, which is considered a cash-equivalent. Because yields have gone up so much, his investment income rose by billions due to it. It's a major reason their operating income just increased 40%.

I suppose 6% on that many billions ain’t bad. Still way less than it could be.

 

[HOLA]

I suppose 6% on that many billions ain’t bad. Still way less than it could be.

It's a bit more complex than that, with the way Berkshire operates.

The average Joe, with their Robinhood account, if they wanted to borrow money to invest, gets charged interest for it, which can be pretty substantial. Buffett has arranged things where he's the one who actually gets paid for borrowing money to invest.

Berkshire's insurance premiums have exceeded the total of expenses and eventual losses for a long time, even when they've been hit by mega catastrophes. They operate with an underwriting profit almost every year, to the tune of tens of billions in recent years.

It allows Berkshire something even better than free money to invest - they're actually getting paid for holding the money and investing it.

But because of the nature of insurance float - money the insurance company gets to hold because of insurance premiums, but which doesn't actually belong to them, because customers make claims on their policies - they can never go all in on stocks.

Berkshire has a policy where, at a bare minimum, they pledge to hold on to at least $30 billion at all times in cash. So right now they really have $127 billion to play with. They've bought back more than $70 billion in their shares in the last 5 years, bought 26% of OXY for more than $14 billion, and made some big purchases - $11.6 billion for Alleghany last year, $8.2 billion for an increased stake in Pilot Flying J earlier this year, 50% stake in the Cove Point liquefied natural gas facility for $3.3 billion this summer - but the cash is piling up faster than they can spend it. There are worse problems for a business to have.

 

[HOLA]

Nov 8 (Reuters) - Take-Two Interactive Software said it would release a trailer early next month for the latest installment in its best-selling "Grand Theft Auto" videogame franchise, ending a years-long wait and sending its shares 8% higher on Wednesday.

The teaser for "Grand Theft Auto VI" will come more than a decade after the launch of its predecessor and will coincide with the 25th anniversary of Rockstar Games, the Take-Two division behind the game.

Several analysts have predicted the new title would be an instant hit with billions of dollars in sales each year.

"The last one was the best-selling game of all time so not surprising that investors expect big things from the next installment," said Wedbush analyst Michael Pachter.

He expects the game to be priced around $70, compared with the nearly $60 launch price of 'GTV V'.

A hack last year released dozens of development videos of "GTA VI", showing footages of robberies, gunplay and open-world driving in what was one of the biggest gaming leaks.

Bloomberg News, which first reported the news on Tuesday, has previously said the game would be set in a fictional version of Miami and would feature two protagonists, a man and a woman.

Take-Two had hinted at the game's announcement in May, saying it would launch several "groundbreaking titles" in 2024 and projecting a surge in net bookings to over $8 billion next year.

"GTA V" has garnered around $7.68 billion in sales since launch and ranks among one of the most profitable titles ever.

Take-Two was on track to add nearly $2 billion to its market value, based on the early trading share price of $147.

The stock has risen by nearly a third this year, partly due to growing expectations of a reveal for the "GTA VI".

 

[lifelessheap]

LoL @ BROS killing it over the last 40 days. 14% isn't bad. I am tempted to buy a bunch more.

Dutch Bros is a cult. It was around in NorCal and Southern Oregon forever, and they are rapidly expanding. If their cult line culture is maintained, the stock could blow up in a few years.

Fuck Starbucks.

 

[HOLA]

NTDOY got a little boost from the Mario movie, but surprisingly to me, it sank bank down. Hit $11.6 in July, then went down to about $10 last month. Just shot back up to $11.8 though. Lots of good news. Great earnings, great outlook and they just announced they're going to make a Zelda movie after the success of Mario.

The Switch is already 8 years old, but it's still selling well, in part because the Mario movie drove people to buy the console.

.....

Since being released in March 2017, the Switch has an installed base of more than 130M units, including selling 6.84M consoles during the most recent quarter.

The company now expects full-year net sales to be 1.58T yen, up from a previous forecast of 1.45T yen. It also expects 420B in net profit, up from a previous forecast of 340B yen.

Separately, Super Mario creator Shigeru Miyamoto said this week Nintendo (OTCPK:NTDOY) is developing a live action adaptation of its popular Zelda franchise.

“I have been working on the live-action film of The Legend of Zelda for many years now with Avi Arad-san, who has produced many mega hit films,” Miyamoto wrote on X, formerly known as Twitter, referencing film producer, Avi Arad.

The movie will be co-financed by Nintendo (OTCPK:NTDOY) and Sony Pictures Entertainment, a division of Sony (SONY). No release date has been announced yet.

 

[HOLA]

Been making all kinds of move while Sherdog was down!

1. I've soured a bit on SCHW. I've been reading a lot of comments from former TD Ameritrade people who got switched over and are unhappy. They just don't like Schwab's format. I don't see what the big deal is. I think it's fine (I think Interactive Brokers kinda sucks). Anyway, I got out at $55.2, for a 5.02% gain. Ended up being a fairly mediocre trade. Oh well. Better than my BABA trade, anyway!
2. I said I was going to sell BAC at $30, but I ended up doing it a bit early. It had a +6% day, and I decided I didn't want to be too much of a greedy fucker. Had it in two accounts, sold at $29.335 and $29.345. First account (7/8 of the total) I had a 15.06% gain and the second I had a 17.36% gain. First bought in Oct-24 and sold Nov-14. Very happy with that one!
3. I trimmed my PATK position by about 5-6%. Have this one spread out in 3 accounts. I'm up close to 80% on my position overall, but what I sold in one account ended up with 28.52% gain. Bought 1-21-22, so it ended up being a 14.82% gain, annualized.
4. I put the cash in SWVXX for now. The default on Schwab is the bank sweep deposits, which earn you only 0.45%. Basically, when you just leave the cash sitting there. But SWVXX is Schwab's own money market fund that pays over 5% on the cash. Works like a mutual fund, but your principal stays the same. Only downside is there is a lag. So if you buy/sell in the afternoon it won't settle until overnight. Not seeing any screaming buys at the moment, so If I can get 5% + just about as close to risk free as it gets, sounds good to me.

 

[emefer]

Been making all kinds of move while Sherdog was down!

1. I've soured a bit on SCHW. I've been reading a lot of comments from former TD Ameritrade people who got switched over and are unhappy. They just don't like Schwab's format. I don't see what the big deal is. I think it's fine (I think Interactive Brokers kinda sucks). Anyway, I got out at $55.2, for a 5.02% gain. Ended up being a fairly mediocre trade. Oh well. Better than my BABA trade, anyway!
2. I said I was going to sell BAC at $30, but I ended up doing it a bit early. It had a +6% day, and I decided I didn't want to be too much of a greedy fucker. Had it in two accounts, sold at $29.335 and $29.345. First account (7/8 of the total) I had a 15.06% gain and the second I had a 17.36% gain. First bought in Oct-24 and sold Nov-14. Very happy with that one!
3. I trimmed my PATK position by about 5-6%. Have this one spread out in 3 accounts. I'm up close to 80% on my position overall, but what I sold in one account ended up with 28.52% gain. Bought 1-21-22, so it ended up being a 14.82% gain, annualized.
4. I put the cash in SWVXX for now. The default on Schwab is the bank sweep deposits, which earn you only 0.45%. Basically, when you just leave the cash sitting there. But SWVXX is Schwab's own money market fund that pays over 5% on the cash. Works like a mutual fund, but your principal stays the same. Only downside is there is a lag. So if you buy/sell in the afternoon it won't settle until overnight. Not seeing any screaming buys at the moment, so If I can get 5% + just about as close to risk free as it gets, sounds good to me.

Vanguard puts all uninvested cash into vfmxx. It’s at 5.3% right now. The Schwabb interface is pretty good. I was glad when they took over my td but now I don’t have much left in there.

 

[toasty]

So who here actively plays the stock market? What would you call your investment style or strategy? Do you have defined long term goals or is it just a hazy "for retirement" kinda thing? Do you do a lot of research and due diligence or are you a meme stonks guy or my dad's cousin gave me a tip type? Do you play options and short stocks or straight buy and hold type? I would love to hear people's current favorite stocks and why, big wins or losses stories etc., If only I had pulled the trigger I'd be rich stories, etc....

 

[KeepingItReal]

Well they aren't here. They are in the Warroom, where most of the Stonks threads are. May I suggest looking there. Danke.

 

[toasty]

Well they aren't here. They are in the Warroom, where most of the Stonks threads are. May I suggest looking there. Danke.

Thanks. i haven't relly gone there because I thought that place was full on politics and flamewars and stress and that is not what I'm here for. Little prey animals like myself, like the shire like atmosphere of Mayberry much better. Hopefully a few non-barbarian at the gates types that live around here might kick in a thought or two

 

[PG29 red0 Jr]

I have 45% of my investments in SPY and 45% in IWM, and then I play with 10%. Of that 10% I have about half of that in TSLA.

My TSLA has about doubled, that was my only big win this year.

 

[toasty]

Well they aren't here. They are in the Warroom, where most of the Stonks threads are. May I suggest looking there. Danke.

yeah I just peeked in there, scary scary place.....me stay here in fetal position even if this thread withers and dies loveless and alone...